Hargreaves calls for 30-day pension transfer deadline

Pensions-savings-retirement-piggy bank

Hargreaves Lansdown has called on the Government to impose a 30-day deadline on pension transfers.

As part of its response to the Treasury’s consultation on barriers to pension freedoms, the firm collected evidence of transfer times.

An analysis of 20,000 transfers reveals electronic transfers took an average of 8.34 days to complete while postal transfers take 29.22 days.

Insurers facilitate the quickest transfers while benefits consultants, administrators and schemes recorded the slowest times.

Head of retirement policy Tom McPhail says: “There is no reason why the vast majority of pension transfers can’t be completed within a week or two. A 30-day time limit isn’t a particularly onerous place to start and is certainly far better than the current statutory limit of six months.

“Pension providers should be dragged into the 21st century and should be encouraged to invest in the electronic systems which help deliver a better service for investors.”

The consultation closes on 21 October.